Owning a home is more than a milestone — it’s a powerful step toward building generational wealth. For many servicemembers, Veterans and their families, there can be a lot to learn: budgets to create, lenders to talk to, and long-term costs to consider. But that’s exactly why the Homebuying Guide from AAFMAA Mortgage Services LLC (AMS) exists: to make the path clearer, simpler, and more manageable. Download the guide here.
“Buying a home isn’t just a financial transaction,” says Rob Greenbaum, Chief Marketing Officer at AMS. “It’s a decision that shapes your future. Our guide covers everything from what to expect when talking to a lender to what will happen at the closing table to give people the knowledge they need to enter this process with confidence.”
Related: 5 Things Every Military Buyer Should Know Before House Hunting
Starting Your Journey
The guide begins with one of the most fundamental steps: creating a budget. Budgeting doesn’t have to be intimidating or complicated. It’s simply a tool that helps you track income and expenses to make clear, informed decisions. You can jot your numbers down on paper, build a spreadsheet or use one of several free apps that automatically track spending. These tools categorize where your money goes — whether it’s toward transportation, groceries or that daily cup of joe. (And, yes, if your a.m. coffee fits into your budget, you won’t have to give it up.)
Creating a personal budget begins with writing down every source of income, including base pay, allowances, special pay, and your spouse’s income. From there, you list your monthly expenses, using your Leave and Earnings Statement to make sure you capture all deductions and allotments, as well as other payments like car loans or credit cards.
Categorizing these expenses as fixed or variable helps paint a more accurate picture. Fixed costs stay the same each month, like rent or car payments, while variable ones, such as utility bills that rise and drop with the seasons, fluctuate. Once everything is on paper, the difference between income and expenses tells the story. A surplus gives you the freedom to allocate more toward savings. A deficit signals it’s time to rethink spending and make adjustments.
Importantly, budgets aren’t carved in stone. As life changes, they should too. Each milestone — paying off a loan, getting a promotion, welcoming a child — is an opportunity to revisit your numbers and ensure your financial plan reflects your goals. As the AMS guide reminds readers, it’s wise to reward yourself when you reach a financial milestone. A small celebration keeps the process positive and sustainable.
Related: Is Paying Points on Your Mortgage Worth It? Smart Savings for Military Families
Budgeting is Just the Beginning
The guide also dives into one of the most often overlooked aspects of buying a home: the true cost of ownership. Homes require ongoing care, and those costs can add up over time. A good rule of thumb is to set aside 1–2% of the purchase price each year for maintenance. If you buy a $300,000 home, that means planning for around $3,000 annually to cover repairs, upkeep, and unexpected issues.
Other upfront costs must also be factored in. Buyers typically need earnest money — a good-faith deposit submitted with the purchase offer — and a down payment due at closing (although this is not always the case with a VA Home Loan). Lenders also want to see that borrowers have enough reserves to cover several months of mortgage payments. After closing, additional costs often emerge, whether it’s landscaping, appliance upgrades, or emergency repairs. The guide emphasizes the importance of preparing for these expenses early, not reacting to them afterward.
Related: Avoid “Buyer’s Remorse” with Help from AMS
Don’t Skip the Home Inspection
Another way to keep costs down is to plan wisely before closing. A thorough home inspection is essential. The AMS guide advises buyers to ask sellers to repair small but important issues like broken locks or safety hazards before moving in. For bigger concerns flagged during inspection, like roof damage or asbestos removal, it’s best to get professional estimates and weigh the cost carefully. Upgrading outdated appliances to energy-efficient models can also save thousands over time, not just in repair costs but in lower utility bills.
Some buyers opt for a home warranty to add a layer of financial protection. These warranties can cover major systems and appliances for a set period, and in some cases, sellers may even split the cost for the first year. This kind of foresight can help smooth the financial transition from renter to homeowner.
Related: Do’s and Don’ts for a Smoother Mortgage Process
Your Credit Score Can Affect Your Interest Rate
The guide also reminds buyers that conversations with lenders are a crucial part of the journey. Before reaching out to any lender, it’s smart to review your credit score and debt-to-income ratio. These two numbers are significant in determining whether you qualify for a mortgage and what kind of interest rate you’ll be offered.
Generally, a credit score of at least 580 is recommended, though higher is better. AnnualCreditReport.com offers free credit reports, giving prospective buyers a clear look at where they stand. Lenders also look at your debt-to-income (DTI) ratio — ideally below 36%, with no more than 28% going toward housing costs.
If those numbers aren’t where you’d like them to be, it may make sense to pause and improve them before applying for a loan. Paying down high-interest debt, avoiding new credit lines, and resolving any issues on your credit report can pay off in lower rates and better loan terms later.
Working With Your Lender
Choosing the right lender is just as important as finding the right home. The AMS Homebuying Guide encourages buyers to look for lenders that offer competitive rates and understand their unique needs. For servicemembers and Veterans, that often means working with someone experienced in VA Home Loans.
When you sit down with a lender, expect questions about income, expenses, and how long you plan to live in the home. A good lender doesn’t just process a loan — they guide you through a major financial decision with transparency and trust. Greenbaum emphasizes, “Homebuying should feel empowering, not overwhelming. When you have the right lender and the right information, you’re in control of the process.”
Even with the best lender, mortgage language can feel like a foreign tongue. Terms like PMI, DTI, and APR often come up quickly. To help, AMS includes a glossary in the Homebuying Guide that breaks down complex terms in plain language. With this resource, borrowers can enter conversations fully understanding what’s on the table.
We’re Here to Help
Thinking about buying, ready to start home-shopping in earnest, or considering a refinance? An AMS Military Mortgage Advisor, a licensed mortgage loan originator, will be happy to provide you with an honest and fair comparison of your mortgage options, including a wide range of affordable mortgages designed to meet your needs.
Ensuring Armed Forces Mutual Members obtain the best mortgage possible is our mission. Get your free mortgage assessment today or give us a call at 844-422-3622!